Post Utme Uniport 2022 Economics Question 22

Practice objective / multiple choice question 22 from the 2022 Post Utme Uniport Economics examination.

Post Utme Uniport 2022 Economics Objective / Multiple Choice

Question 22 POST_UTME_UNIPORT • 2022 • ECONOMICS • objective

A country's balance of payments is in deficit, and the central bank decides to intervene by selling foreign exchange on the market. What will be the effect on the exchange rate?

Answer Options

A. The exchange rate will appreciate.

Correct Answer B. The exchange rate will depreciate.

C. The exchange rate will remain the same.

D. The exchange rate will fluctuate wildly.

Correct Answer

Correct Option:

The exchange rate will depreciate.

About This Question

This is Post Utme Uniport 2022 Economics Question 22. It is one of the objective questions from the 2022 Post Utme Uniport Economics examination.

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